The U.S. economy added 273,000 jobs in February and the unemployment rate ticked down to 3.5 percent. This indicates continued robust growth in the labor market, exceeding expert expectations by a wide margin.
This news comes at a time when many are anxious to learn how the coronavirus outbreak will impact the economy. This report, however, reflects a time period prior to indications of a domestic outbreak and the subsequent amplification of concern. The strong growth in February is encouraging; it means that the nation’s economy remains on a growth trajectory as we enter this period of uncertainty.
Markets, which have been exceedingly volatile in recent weeks, may not be encouraged by this news of blockbuster jobs growth since they are focused on the more recent news of further outbreaks. But this news, paired with the Federal Reserve’s recent dramatic rate cut, puts the economy on strong footing to face the inevitable ramifications of the outbreak.
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Beth Akers is a senior fellow at the Manhattan Institute and a former Council of Economic Advisors economist. Follow her on Twitter here.